- 1. Basics
- 2. Patterns
- 3. Indicators
- 4. Intermediate
- MT4 to Telegram
This is our DTI (DaxTrader Intraday) strategy which is a trend-following, momentum-based strategy for short-term DAX and index trades
DTI DAX Trading Strategy
Notice how we were trading up above the deviation high (that’s the upper band), before retracing back to VWAP (Volume Weighted Average Price – that’s the middle line inside the band). At this point the DTI algorithm produced a sell signal.
For shorts, you look for the candles to turn dark blue, whilst the chart background colour is red.
DTI DAX Trading Strategy
In this example, you can see how price tagged the deviation low early on, but the market rejected lower prices. The background chart colour is green, suggesting to look for longs. Once you see green candles, you have a buy setup.
So in this case, we take a long with a stop loss underneath the supertrend dots and then calculate the target to provide 4:1 reward.
Normally, a trade will be kept open until either it hits the stop loss or it hits the target. However, you may choose to tighten up your trades when you see the yellow candles. These are formed when price closes above or below the deviation bands. It suggests that price is extended and has a high probability of pulling back/bouncing.
When this happens, you can exit the trade once price closes below the supertrend dot.
(Long video tutorial)
Never be a slave to working. Always set aside leisure time to do the things that you love. You need be doing what you enjoy.
In trading this means setting out specific times that trade and specific times where you can walk away, go out for a run, do something else.
This strategy works best between 8-11am UK time and 1-4pm UK time.
Basic psychology teaches us that we have a basic human instinct to survive. Well, in the financial markets, that need to survive generally comes in form of following the herd. Following the trend. We can not move the market on our own, because we do not have the capital. So instead, we position ourselves to ride the momentum.
In these situations you must have a strong understanding of win rates vs reward:risk ratios. Because if you are aiming for 4:1 reward you will get a LOT of stop losses. And this is normal. For every five trades, four of them can be losers, which is 80%.
Our ideal win rate for this strategy is 25% and higher to cover the commission and spread costs
To use this DAX trading strategy you will need to use the Sierra Charts platform. Download and install a trial version of Sierra Charts and take it for a test drive – the free trials are available here
Sierra Charts is very powerful and customisable. I have spent years configuring my charts to look this way, so watch this tutorial video to get your version set up like mine quickly.
Once you have Sierra Charts installed and you’ve set it up so it’s ready to go, you will need to contact me with your username (your log in username) and then I can install the software on your account.
Let’s Go Ahead
Go ahead with any of the following memberships and you get access to the strategy. You can also purchase a longer membership for signals or trader development which includes an excellent discount.